Stock market today: Crude oil falls as geopolitical tensions show signs of easing
Oil prices tumbled sharply on Monday after the United States and Iran held back from launching fresh strikes over the weekend, raising hopes that diplomacy could ease tensions in the Middle East and gradually restore shipping through the Strait of Hormuz.Brent crude futures were down $4.37, or 4.52%, at $92.41 a barrel after slipping 5.05% earlier. US West Texas Intermediate (WTI) crude was also 5.23% down before trading $4.30, or 4.81%, lower at $85.01 a barrel around 7:15 am.
Both benchmark contracts traded at their lowest levels in nearly a week, retreating after three consecutive weeks of gains.In early trading on Sunday, Brent crude for September delivery fell 4.9% to $92.02 a barrel after reopening, extending a 3.9% decline recorded on Friday. Benchmark US crude for September delivery dropped 5.6% to $84.34 after falling 3.1% in the previous session.
Meanwhile, Brent crude for October delivery, now the most actively traded contract, declined 4.6% to $87.48.The decline came after the US and Iran refrained from carrying out military strikes in the Persian Gulf for a second straight day. The pause in hostilities followed two weeks of attacks and fuelled hopes that a diplomatic solution could help de-escalate the conflict.